The nominee for the Governor of the Central Bank of Kenya Kamau Thugge says there is a need to amend the banking act to suite Islamic banking in Kenya following collapse of Gulf African Bank and Community Bank.
He said he supports of the housing fund noting that it is a saving.
Dr. Thugge said the fund will create and increase employment, adding that more savings will lead to more investments leading to growth.
Speaking during the vetting at Parliament, Dr. Thugge said explained about the depreciation of the Kenyan shilling, saying inflation and high prices of commodities were due to an increase in interest rates.
Dr. Thugge has also recommended the issuance of dollar dominated bond with a better rate that will build foreign exchange in the Central Bank.
Additionally, Thugge stated that the impact of agriculture in Kenya cannot be understated.
“Agriculture has a huge impact on growth of our economy, job creation, cost of living, reserve and accumulation.” Said Dr. Thugge.
He was amongst six candidates shortlisted by the Public Service Commission after President William Ruto nominated him on May 15, 2023, following the imminent retirement of Patrick Njoroge, whose two terms end next month.
The governor assumes the role of CEO and spokesperson of the bank and is responsible for its overall management.
If approved by the National Assembly, Thugge will become Kenya’s 10th CBK governor after trouncing Dorcas Mutonyi, Haron Sirima, Edward Sambili, Nancy Onyango, and Adan Mohamed, who were shortlisted by the Public Service Commission early this month.
If approved by Parliament, he will face the daunting task to stabilise the shilling which has sharply depreciated against the dollar, and a heavy government debt burden, which is threatening to upset years of macro stability.
Thugge was forced out of his position at the National Treasury over his alleged role in the multibillion-shilling Kimwarer and Arror dams’ construction in Elgeyo Marakwet.
He was, however, cleared of any wrongdoing in 2021.
More to follow…..